Starbucks' latest earnings report growth of only 1% in China and Asia Pacific

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Starbucks released its results for the third quarter of fiscal 2017 in the early hours of the 28th, showing that global same-store sales grew 4.0%, lower than the 4.8% originally expected. Chinese mainland and Asia Pacific grew 1.0 per cent and are expected to grow 4.3 per cent. This is the seventh consecutive quarter, and Starbucks' same-store sales performance is lower than expected.

Chinese mainland Interface News reported today that Starbucks' financial results for the third quarter of fiscal 2017, released in the early morning of 28th Beijing time, showed that global same-store sales grew 4.0 percent, lower than the 4.8 percent forecast.

The performance of the Chinese market is less satisfactory, with same-store sales in China and the Asia-Pacific region growing by 1.0% in the third quarter, while analysts expect growth of 4.3%. This is the seventh consecutive quarter, and Starbucks' same-store sales performance fell short of analysts' expectations.

At present, Starbucks has 2800 stores in China. Starbucks is expected to open 5000 stores in China by 2020 as market education matures and Starbucks makes greater commercial returns from fast-show stores, the report said.

However, the analysis believes that the disadvantage of rapid expansion is the rapid consumption of market potential, and the most direct data response is the growth of same-store sales.

According to the report, the initial estimate of the operating capacity of a Starbucks store in China is US $300000; by the same algorithm, the average global Starbucks store is US $270000. Therefore, although the same-store growth in China has slowed down, the performance is still good.

Reported that Starbucks on the 27th with about $1.3 billion in cash to buy the eastern China market joint venture "Shanghai Unified Starbucks Coffee Co., Ltd." the remaining 50% stake. It is not difficult to see that Starbucks wants to regain control of the Chinese market through this acquisition to carry out its expansion plan.

Johnson, president and chief executive of Starbucks Coffee, said that the overall direct management of the entire Starbucks Chinese market will help achieve the goal of growing the number of stores to 5000, which is a key step for Starbucks to achieve long-term profitable development in the Asian market.